The AfDB inks agreement for road projects in West Africa

Friday, 01 December 2017 06:47

The road project aims to boost up infrastructure to improve the quality of life for Africans. (Image source: ipickmynose/Flickr)The AfDB and the European Commission have signed five co-financing agreements totaling US$776.41mn to support road infrastructure projects in West Africa

Of the total cost, the AfDB contributes to US$416.79mn in loans and grants and the European Commission US$125.04mn in grants. The remaining amounts will be financed by other partners, including the West African Economic and Monetary Union (WAEMU), the concerned West African countries and other donors.

The agreements were signed during the 6th EU-Africa Business Forum, held in Abidjan. The presidents of the Economic Community of West African States and of WAEMU, West African transport ministers and several donors were present at the signing ceremony.

The cooperation agreements form part of a historic framework agreement known as the Pillar Assessed Grant or Delegation Agreement (PAGODA) between the AfDB and the European Commission on September 25, 2017. They include blended finance instruments to mobilise grant resources to contribute to the implementation of the Bank's High 5 priorities.

As the continent’s premier financial institution, the AfDB plays a major role in meeting the financing needs of African countries. The signing of the PAGODA partnership agreement and of these five specific infrastructure projects showcases AfDB’s role in leveraging partner institutions to achieve greater development impact.

The PAGODA is expected to help fund the rehabilitation of the Lome-Cotonou road, studies and measures for trade and transport facilitation on the Abidjan-Lagos corridor, road development and transport facilitation on the Bamako-San Pedro corridor between Mali and Côte d’Ivoire, as well as the construction of the Rosso bridge between Mauritania and Senegal and the rehabilitation of the CU2a community road section in Burkina Faso near the border with Niger.

“The AfDB and the European Commission are committed to financing development projects focusing on poverty reduction by investing in critical infrastructure to promote seamless connectivity of transport, energy and ICT,” said the bank to the press.